All Schools - Note - 03-18-2020 | Clear Admit LiveWire

March 18, 2020 6:37am ET

Note about All Schools

Round: Round 2

Received via n/a

GRE: 332

Post MBA Career Name: Consulting

Note:

This note is not intended to demoralise any fellow applicants here but to ask a pressing question. Being an international student trying to get in a top 10 schools for last 3 years, I am deeply concerned about joining the school ( admit from an east coast school, waiting to hear from a reputed west coast school) this year on account of potential recruitment challenges driven by virus situation. It baffles me a bit that not many people ( at least not explicitly posited here ) are asking this question. Can somebody please share some guidance over the issue at hand? Does opting in on a massive finanlcial liability ( student loan) in the current times ( for Aug 2020 matriculation) make sense? Also, if i can request to avoid any other factor such as why do one want do an mba et al. Thank you

Like (6)

Show Comments (18) Last: March 19, 2020

anon82509 Likes Earned: 8 I'm working on the same kind of calculus. I'm not as worried at this point about direct impact from the virus. It might take up until the fall and there may be some minor impacts to how recruiting is done but I don't think at this point that it will be massive/insurmountable. What I am worried about is the economic fallout from the panic over the next few months. Still leaning towards a quick recovery once the panic subsides but my confidence in that is shrinking by the day. I've started gathering data on timelines and impact to MBA outcomes in the 2000/2008 time frames (short and long term). The other data point that's very significant in my case is the tendency for MBA apps to go up in economic downturns. I've been very happy with the schools I've been getting into with, frankly, sub-optimal stats. I suspect that I won't don't nearly as well with significantly more competition (assuming I have to re-apply and can't just defer). Finally, first world problem, I am concerned about being unable to do pre-term trips / general social bonding group events since the network is a major reason behind my pursuing an MBA. (2)

anon15216 Likes Earned: 11 It's important to remember that there weren't fundamental economic issues apart from high stock valuations before the virus outbreak began. Unlike the 2008 crisis when people were worried that the economic system would collapse. I see a strong bounce back once the virus panic subsides, as consumer demand returns and people resume normal activities. Some sectors will definitely be affected during the virus outbreak though - hospitality, airlines etc. But apart from a massive correction in stock prices I don't see this as having a long term economic impact that should deter you from getting an MBA. (2)

anon11819 Likes Earned: 18 OP here. Thank you @82509. I stumbled upon employment stats ( yet to be substantiated ) on 2002 amd 2009 recruiting. The number don't look promising even from HBS types. Please share your thoughts if you can get more insights from data on your side. @15216: (With my fairly limited understanding of macros) I agree that first order impact of the situation might be temporary such as market bouncing back, travel industry finding its feet soon etc. However, what I am clueless about is the second order effects for ex: disruption of supply chain (think of China), ripple effect on already balooned balance sheets of firms augmented by loose monetary policy. It starts with not so fundamental market reaction but can turn into economic slide. Are people, who still see this as transient phenomenon, betting on the thought that by their graduation in 2022, things would be good enough to get a job? (2)

anon82509 Likes Earned: 8 Interesting starting point perspective: https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-business (1)

alexbr4 Verified User. Likes Earned: 1437 https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-business (1)

anon66979 Likes Earned: 11 I feel this is actually a great time to pursue an MBA. It will be tough for folks graduating soon / recruiting now, but I feel that for us (2022) it shouldn't be as bad. Reality is, the whole Economy will be affected- you might be better off at school now than at your current job, depending on your industry. It also gives you the chance to pivot into a new industry with a better outlook. (4)

anon24171 Likes Earned: 2 I agree with @66979. Because of the virus, it is a good time for us to study for two years, and it is probably more competitive for those people who are going to graduate this year. (1)

anon11819 Likes Earned: 18 @66979 and @24171 I get the point. Thanks. My query in that case is the following: 2009 and 2002 ( both are the very next years from the crisis) show dismal figure on internships even from the ivy leagues. Why do you think this time would be different? (2)

anon11819 Likes Earned: 18 Let me confess one thing here that the comment above on internship is not verified by myself as yet. It is based on my reading from a popular mba prep website which i can assume to be a credible source of information. Thank you (0)

anon17068 Likes Earned: 18 I think it's a great time to be at school in general, but I'm not sure it's the best move to go to an American school given how things are looking in the financial markets. The US banking system is teetering on collapse (FED injected $1T in last night and the market is still down 8%) , so who knows what that will mean for the corporate sector going forward (1)

anon31314 Likes Earned: 111 @17068, US Financial system is NOT teetering on collapse. Yes, the fed injected in over $1T of stimulus but that is somewhat similar to the 2008 injection of just under $800B. So take that in perspective. Liquidity in markets is strained but functioning. Longer term, financial markets will recover. I can see May 2022 being a potentially great time to enter financial services. In my experience with working with private equity funds and hedge funds, the few years after the financial crisis (2009-2011) were incredible from an opportunity perspective. Just like successful investors, we need to keep a long term approach in investing in ourselves! Keep calm and safe everyone. (5)

anon19124 Likes Earned: 40 One thing that was pointed out to me that might also be helpful to take into consideration: schools are likely taking a hit to their endowments with the stock market nosedive. It might recover by next year, but schools may not be as generous with scholarships a year from now vs. the commitments they've made this year so far. (1)

anon28701 Likes Earned: 21 The markets were already priced in for a small recession. Anticipate the cumulative effect of Covid, a disruption in the supply chain in China plus another potential "act of god" such as the overdue "big quake" in California and we got ourselves the makings of another great depression. Add to that, the fact that this is an election year in a polarized nation and Treasury is already predicting 20% UE in Q4 of 2020, nothing is being done to calm these jitters. However, do what you have always done - keep your head down, focus on the fundamentals of making yourself more employable (certifications, concentrations et al) and you'll survive these cycles. (3)

anon83470 Likes Earned: 26 I think this years mba is going to be a mediocre experience at the premium price. But that’s just me (0)

anon11819 Likes Earned: 18 Reddit thread on the same discussions https://www.reddit.com/r/MBA/comments/fihtjj/covid19_and_the_class_of_2022/ (0)

alexbr4 Verified User. Likes Earned: 1437 https://www.reddit.com/r/MBA/comments/fihtjj/covid19_and_the_class_of_2022/
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anon68163 Likes Earned: 27 @28701 - I'm sorry... your economic thesis is based on predicting an earthquake in California??? Get out of here. (2)

grichmond Verified User. Likes Earned: 1045 Thanks to everyone who has contributed to this discussion. Since we realize that schools and applicants alike would benefit from knowing more about how COVID-19 might impact the pursuit of an MBA, we've launched a 2-minute survey for admitted students and applicants to complete. We'll share results with the Clear Admit community once we have them. Please take the survey! http://bit.ly/COVID19-survey
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